CIPP Payroll: need to know - 2022-23

`The Chartered Institute of Payroll Professionals

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• working across international borders, including multiple countries • allocation of primary taxing rights, and need for double tax relief • taxation and social security where there are more than two countries involved • accommodation, travel, and other expenses including consideration of who will be paying for these and the relevant tax treatment. This will include considering whether permanent workplace rules are clear for these new working practices • short term business visitor rules, overseas workday relief rules and PAYE withholding considerations such as modified payroll • pension contributions and share schemes • the creation of permanent establishments for corporate tax • where relevant, the above as they apply to remote working within the UK.

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Public Sector exit payment consultation opened Published: 29 July 2022 Emailed: 3 August 2022

HM Treasury has released an open consultation titled: Public Sector Exit Payments: a new controls process for high exit payments.

HM Treasury are seeking views on proposed guidance and processes dictating additional reporting for two exit payment processes. The first would be a new process for exit payments totalling over £95,000 in central government; the relevant secretary of state would be required to approve before any exit payment is agreed. The second would see the current system modified to require approval for special severance payments. An exit can require both processes and approvals if necessary. The approval process will be conducted by an accounting officer prior to processing by payroll in the usual way. The consultation asks 14 questions regarding the proposals. Seeking views on the guidance, proposals, thresholds and impacts not considered. The consultation will run until 17 October 2022.

The CIPP policy team welcome any views that can be passed on to HM Treasury in response to this consultation – policy@cipp.org.uk.

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Call for evidence – review of hybrid and distance working Published: 31 August 2022 Emailed: 7 September 2022

The Office of Tax Simplification (OTS) is seeking views on hybrid and distance working trends and the effects on the existing tax rules and guidance. The call for evidence is open until 35 November 2022.

A huge shift in the way we work has been seen across the UK following the pandemic. Whether this is for business resilience or offering more flexibility to employees to retain talent varies by company. Current tax rules are at risk of being stretched with these new, non-traditional ways of working.

The key areas the OTS is looking to explore are:

• working across international borders, and what that means for things like tax, social security, tax residence, and permanent establishment • how accommodation, travel, and other expenses work in a hybrid world, including who will pay and whether permanent workplace rules make sense • application of short-term business visitor rules, overseas workday relief, and modified payroll • the treatment and impact on pension contributions and share schemes • the risks or otherwise of creating permanent establishments or even changing corporate residence.

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